A Niger Delta Organization in the auspices of Environmental Rights Action (ERA)/Friends of the Earth Nigeria has vowed to do all within the legal means to stop International Oil Companies (ICOs) planning Disinvestment or Divestment from leaving the region without reversing the messes, occasioned by oil exploration in the region.
The group stated this as one of the resolutions reached during a one day meeting in Uyo, Akwa Ibom State capital at the weekend to discuss possible ways out of the dilemma and perplexing situations most of the oil company host communities have found themselves over the years.
The Executive Director of ERA, Chima Williams in his speech, said the meeting which had in attendance: representatives from civil society, NGOs, legal community, host communities, media etc was a combination of forces working together, as no single individual can proffer solution to the complicated issues of oil exploration in the region.
Williams said that the only way to win in the situation is to unite and speak with one voice, noting that the reason given by the ICOs for divestment after destroying the sources of livelihood of the people, including drinking water is not commensurate with the global meaning of the process.
He expressed displeasure that for over six decades of oil exploration in the region and its consequences on the region, the IOCs now want to abandon the region and escape to the offshore to avoid taking their responsibilities of cleaning the region.
Williams said that the level of environmental pollution, oil spillage and gas flaring which the Niger Delta region had suffered in the hands of multinational oil companies, divestment was not the best option for now.
He said that the activities of IOCs in the Niger Delta region had destroyed aquatic life and caused untold health hazards and even shortened the lifespan of the people of the region.
“Oil companies are divesting from onshore oil fields and moving further offshore and away from communities, while national companies are buying off the oilfields left by the oil majors, without clear provisions about who is liable for historical contaminations and related socio-ecological issues.
“The over 30 million people who live in the oil and gas producing Niger Delta have not benefited from the huge amounts of resources pumped from beneath their lands, rivers and creeks,” Williams said.
He discouraged Niger Delta communities from resorting to self help, saying that such measures does not solve issues but rather escalate problems beyond the control of all parties involved.
He expressed optimism that with the coming together initiative, though it takes long, justice would be served.
The Executive Director expressed disappointment, that after providing incentives, conducive environment for business operations for the IOCs, the Nigerian Government don’t know the quantity of what is being extracted from their communities, let alone how to quantify the supposed royalties and taxes.
Williams however recommends that; those divesting and those investing as domestic oil companies for nationals; government should design an Environmental Remediation Bond, put money into it and set up a structure to manage the bond, with representations from: Government agencies, investing and divesting companies, host communities, civil society, with a constituted management committee to manage the bond.
He explained that if there is any mishap, the government will not wait for the oil companies or budget approval but would be fixed through the bond. And in that case, there would be swift responses to issues.
“Government provides incentives, conducive environment for business operations and the business operators in turn are meant to pay taxes and royalties; well calculated but because of the joint venture arrangement, the operators don’t pay taxes. They engage in private corruption activities to dodge taxes and pay whatever they decide as royalties.
“They pay as they calculate because the Nigerian Government don’t even know what is being extracted from their communities; if you don’t know what is extracted, how would you know how to quantify the royalties that is expected? These are the challenges.
“What they call corporate social responsibility projects is total fraud, because the money they invest in those projects, if you check their records; you will discover that they build it into operational cost.
“It is not as if officials of government don’t know all these but because of corporate capture, they seldom complain but we are challenging them to come out and let us discuss. We have our facts and figures, we will present, let them counter it so we know who is telling the truth.
“They complained of double taxation and that Nigerians are involved in sabotaging their facilities, stealing their oil; I have thrown this as a global challenge on CNN, to ask Shell, ExxonMobil, Total and all the ICOs including the government cronies, to come forward and present their facts with data because our data shows that from 2021, when we get judgement, the incidences of sabotage and oil theft had reduced drastically. Why are they giving that as reason for divestment?
“Shell made it clear that they can no longer finance the demands of Niger Delta; when they are declaring profits of millions of Dollars on monthly and quarterly basis.
“We know that he who owns asset; as of right, can dispose of his asset the way he wants and when he likes but by the rule also, when your asset has created an uncomfortable situation for your neighbour, you are no longer at liberty to dispose of it and this is where our campaign against divestment is anchored.
“You have created problem to the Niger Delta region, you have created problem to the whole Nigeria as a result of your oil explorations so you can no longer claim as of right and go all the way to sell your asset. This is when we call on the companies that are divesting, to please clean up their mess.
“If you cannot leave us better; don’t leave us worse than you met us. Take us back to where our environment was before you before you began your explorations. Once you are able to do that, then we can celebrate your exit. As long as you have destroyed us; we will never leave you to go and we will use all legal means to fight you,” Williams expressed.
Also speaking, Mr Ufot Phenson, President, Akwa Ibom Oil Producing Community Development Network (AKIPCON) said that the perceived reasons for multinational companies embarking on divestment is to evade their obligatory responsibilities and liabilities.
Phenson added that the IOCs divestment policy is to further entrench in the region the tendency of neo-colonialism characterised by use and dump tactics, exploitation, cheats, abandonment, enslavement and impoverishment of the people.
He said that the divestment policy of IOCs is to evade the remediation of the battered and polluted Niger Delta environment by the oil giants.
“Their responsibilities to the host communities in this regard which they have failed to discharge include; payment of compensation arising from oil spills, gas flaring effects, hydrocarbon pollution effect on the environment.
“To save their funds and maximize profit to the detriment of oil producing communities in the region in particular and Nigeria in general. To operate under cover or in proxy using the new company as a cover,” Phenson said.
Phenson said that the IOCs wishing to divest should as a matter of priority pay compensation to alleviate the suffering of the Niger Delta region and remediate the polluted environment to it original state before any divestment.
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